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Sygnum enhances its loan offerings by introducing staked Solana (SOL) as collateral, marking a significant step for institutional clients seeking liquidity and returns.
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The bank’s decision is a strategic response to overwhelming institutional interest, which has seen its loan volumes double within the last year, necessitating expanded collateral options.
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According to Benedikt Koedel, Head of Credit & Lending at Sygnum, “By enabling staked Solana as collateral, we’re addressing a key client need to optimize yield while maintaining liquidity.”
Sygnum introduces staked Solana as loan collateral, responding to rising institutional demand, offering clients liquidity and staking rewards seamlessly.
Staked Solana: A Game Changer for Institutional Lending
Sygnum, a leader in the digital asset banking space, has officially added staked Solana to its collateral options for Lombard loans. This strategic addition not only enhances liquidity for institutional clients but also allows them to capitalize on staking rewards while borrowing against their assets. The offering is a testament to Sygnum’s commitment to meeting the evolving needs of its clientele in the burgeoning crypto market.
Institutions Embrace Borrowing with Staked Assets
The introduction of staked Solana as collateral comes at a critical juncture for Sygnum. The firm has witnessed a remarkable surge in demand for loan products, doubling its loan volumes in just a year. By enabling this feature, Sygnum not only enhances its service offering but also aligns itself with its institutional clients’ desire for more flexibility in asset management.
Understanding the Benefits of Staked Loans
One of the most compelling advantages of using staked Solana as collateral is the reduction in loan costs. Unlike regular Solana, where clients miss out on staking rewards, the staked version shifts a portion of the rewards towards offsetting the loan fees. This innovative approach allows clients to yield passive income while accessing necessary liquidity.
Robust Liquidity Management and Security
Sygnum’s adoption of staked Solana signifies a comprehensive strategy to bolster liquidity management for its clients. With full segregation of client positions on-chain, Sygnum ensures that assets are not pooled but managed individually, enhancing security and compliance. This robust framework highlights Sygnum’s dedication to safeguarding client interests while fostering an innovative lending environment.
Conclusion
The addition of staked Solana to Sygnum’s collateral offerings represents a pivotal shift in crypto-backed lending. By effectively addressing clients’ needs for liquidity and yield optimization, Sygnum sets a new standard in institutional finance. As institutional demand for crypto assets continues to grow, Sygnum’s proactive approach positions it favorably in a competitive landscape, making it a potential leader in the crypto banking sector.
